Planning for Financial Security: How Multi-Year Guarantee Annuities Could Work for You

Retirement savers who like to take control of their finances have different goals and strategies, but they share one thing in common—a desire for financial security. Whether you're a mid-career professional with a family, or a single parent empty nester, benefits like guaranteed growth, protection from market downside, and tax deferral are probably high on your list—and that's where a Multi-Year Guarantee Annuity from American National Insurance Company really shines. Now available online, they offer financial planners a competitive interest rate and protection against market volatility—all while allowing access to up to 10% of their monthly annually, free from surrender charges or market value adjustments. 

Let's take a look at some hypothetical profiles to illustrate how MYG Annuities can support a variety of financial goals and help build long-term security across different life stages.
 

Deliberate Dave and Linda: The Tax-Savvy Couple Planning their Retirement Transition

David and Linda are 60 and 57 and married with a child still in college. They are deliberate planners who prioritize protecting their savings and minimizing taxes in retirement—a goal each hopes to achieve in the next three years. 

Financial Situation
Dave and Linda have built up retirement savings across an IRA, brokerage account, money market account, and CDs. While their IRA offers tax advantages, they're exploring whether reallocating some of their larger assets could provide better flexibility and outcomes. With a child still in college and retirement on the horizon, they're focused on balancing tax efficiency with access to funds and protection from market volatility. 

Goals
They are looking to move their money out of maturing CDs and want something that avoids market exposure but still gives a competitive rate of return. They're also thinking ahead to when they will be in a lower tax bracket. Bridging the gap between early retirement and Social Security is also an important consideration.

Why an MYG Annuity makes sense
An MYG Annuity provides Dave and Linda with guaranteed growth of their nest egg with no market exposure. Plus, they'll enjoy a couple different tax advantages when they use it to defer taxes until retirement: First, it allows them to grow their retirement savings free of annual taxes on earnings until they choose to make a withdrawal. Second, if they wait until retirement to withdraw, they'll likely be in a lower tax bracket and owe less in taxes. They also have a built-in option for flexibility. 

Remember how bridging the gap between early retirement and Social Security was a concern? With an MYG Annuity, David and Linda have flexibility to access up to 10% of their MYG Annuity penalty-free annually (with no IRS penalty after 59 1/2). It's reassuring to know that they can access some of their funds during the guaranteed interest rate period if something unexpected comes up.
 

Soon-to-be-Retired Sarah: a risk-averse empty nester

Sarah is 55 years old and nearing retirement. Because she's a conservative planner who values predictability, she doesn't want her portfolio taking any major losses this close to retirement. She's also an empty nester and plans to be at least semi-retired in the next five years. 

Financial Situation
Sarah has been saving and contributing to tax-deferred retirement accounts like a 401(k) as well as taxable investments and savings like a Roth IRA, money market account and a traditional savings account. She takes a thoughtful, risk-aware approach to her finances—favoring dependable returns over aggressive growth. 

Goals
Sarah is looking to move a portion of funds from her money market and savings accounts into a stable product that can offer better returns than a high-yield savings account or a CD. An MYG Annuity could be a good option because of its guaranteed growth without exposure to market risk, giving her stability as she nears retirement. The consistent returns eliminate the need for her to repeatedly open and close CDs every 6-12 months. The tax-deferred growth on her earnings until she decides to access her money is also an advantage. 

Why an MYG Annuity makes sense
At Sarah's age and stage in life, protecting the wealth she has accumulated is her top priority. She's looking for a competitive, steady return that minimizes her exposure to risk. An MYG Annuity allows her to grow her funds free of market worries, while helping her manage taxable income during her final working years. 
 

Mid-Career Mark: a goal-oriented saver balancing growth and risk 

Mark is 50 years old and wants to save for retirement but is also sensitive to market risks. He doesn't want to be over-exposed to the potential volatility of Wall Street. His wife also brings in money and they'd like to build a reliable pot of money they can draw from when the time is right. 

Financial situation
Mark and his wife are following sound financial practices. He is currently taking advantage of his 401(k) and also invests in an IRA, 529 college plan and a high-yield savings account. He doesn't want to stop there and is always on the lookout for other products that could be a good fit for him. 

Goals
Mark wants to diversify his holdings by purchasing a secure product that offers better growth than a high-yield savings account but less risk than putting his money into the stock and bond markets. He values diversification and is hoping this money might eventually pay off his mortgage. 

Why an MYG Annuity makes sense
With an MYG Annuity from American National Insurance Company, Mark can lock in a guaranteed rate for several years that will outpace his current high-yield savings account and help him build wealth. At the end of his holding period, he will have the option to withdraw funds (perhaps to pay off his mortgage) or continue the annuity and enjoy deferring taxes on earnings until he nears retirement. Either way Mark can use an MYG Annuity to grow his savings without market risk and annual taxes on earnings to achieve his goals. 
 

Is a Multi-Year Guarantee Annuity from American National Insurance Company right for you?

That's a question only you can answer for sure. But for people who prefer to chart their own course, MYG Annuities can be a simple way to turn a portion of your retirement savings into 3 to 7 years of guaranteed growth that is shielded from market volatility.

Since 1905, we've been dedicated to providing trusted financial solutions that help Americans achieve their goals. By making Multi-Year Guarantee (MYG) Annuities directly available to DIY planners online, we're helping to put financial security within everyone's reach. Visit our product page today to see rates, terms, and how a MYG Annuity from American National could support your financial security.

Disclosures

Information herein is not intended to be legal or tax advice. You should consult with your own attorney and tax advisor for your specific circumstance. Current U.S. tax law provides that earnings from an annuity are taxable only upon withdrawal as ordinary income. Any withdrawals in excess of the surrender free amount are subject to surrender charges or market value adjustments. 

Examples are for demonstrative purposes only. Assumes contract is individually owned. 

Penalty-free withdrawals allow up to 10% of the annuity value at the beginning of the year to be withdrawn annually, free of surrender charges. Any withdrawals, including interest-only withdrawals, will reduce the amount of interest credited to your contract. Withdrawals of earnings are subject to income tax. A 10% IRS penalty may be imposed for withdrawals before age 59 1/2.

Interest rates and interest rate guarantee periods are subject to change. At the end of the selected interest rate guarantee period, you can either withdraw all your money without penalty during a special 30-day window or continue the annuity and earn an annual effective interest rate declared annually on the policy anniversary. This special surrender option applies to a full surrender day. 

American National is a group of companies writing a broad array of insurance products and services operating in all 50 states. American National was founded in 1905 and is headquartered in Galveston, Texas. Not all products and services are available in all states. Form Series: MYG24 (Forms may vary by state). CA Form: MYG16(04). Not available in New York. 

Not a deposit. Not FDIC insured. May lose value.